Question 1

Does a FEMA disaster declaration stop my loan from closing?

Accepted Answer

No. It adds a condition. Properties in a declared county typically require a post-disaster inspection dated after the incident end date confirming no damage before the loan can fund.

Question 2

Is a new appraisal required after a disaster declaration?

Accepted Answer

Usually not. An appraisal dated before the incident generally needs a re-inspection, such as a 1004D completion report from the original appraiser, rather than a brand new full appraisal.

Question 3

How do disaster declarations affect rate locks?

Accepted Answer

Inspection turn times in heavily impacted counties can run one to three weeks, so brokers should request lock extensions as soon as the subject county appears on a declaration.